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The Effects of Feed in Tariff on Foreign Direct Investment in Malaysia

2012; RELX Group (Netherlands); Linguagem: Inglês

1556-5068

B. Bakhtyar, Azami Zaharim, Kamaruzzaman Sopian, Omidreza Saadatian, Norasikin Ahmad Ludin,

Global Energy and Sustainability Research

Foreign Direct Investment in Malaysia has nearly reached to 10 billion dollars in 2011. As 2011 statistics shows, almost largest Foreign Direct Investment figures in Malaysia are dedicated to energy sector. Also, Malaysia has launched a new Renewable Energy mechanism under the name Feed in Tariff. Feed in Tariff is a new incentive for energy producers which can affect Malaysian Foreign Direct Investment largely. This paper utilizes an archival research on current Malaysian Foreign Direct Investment in contrast with solar part of Feed in Tariff policy. The paper discusses the Malaysia’s Renewable Energy Feed in Tariff scheme in solar energy and its effects on absorbing the Foreign Direct Investment of the country. Investors in Malaysia and policy makers in the other countries especially in Association of South East Asian Nations (ASEAN) can use this experience and trace the effects of Feed in Tariff on Foreign Direct Investment in Malaysia.